Apple to face $900 million quarterly loss due to tariffs

Apple is preparing to absorb a major financial blow this quarter, a $900 million hit tied directly to mounting tariffs. 

CEO Tim Cook says the road ahead is anything but clear.

Speaking during Apple’s Q2 2025 earnings call, Cook admitted that despite most of the company’s products being shielded from direct tariff exposure so far, the rising costs are already biting.

“It’s very difficult to predict beyond June,” he said, as Apple calculates the long-term impact of Trump-era tariffs that remain in place and potentially set to intensify.

To stay ahead of the curve, Apple has ramped up production outside of China, shifting U.S.-bound manufacturing of iPhones, iPads, Macs, Apple Watches, and AirPods to facilities in India and Vietnam.

This move was designed to sidestep the harshest effects of existing tariffs, but it might not be enough. New hikes scheduled for July could undercut that strategy, especially for products like AppleCare accessories that still face tariffs as high as 145% when imported from China.

Cook credited Apple’s supply chain team with helping the company navigate ongoing disruptions, saying, “I think the operations team has done a phenomenal job.”

But the looming uncertainty leaves Apple in a precarious position.

For now, he noted, “We haven’t seen any evidence of customers changing buying patterns or stockpiling ahead of expected price increases.”

Beyond the trade war concerns, Apple was also hit with a legal defeat in its battle with Epic Games.

A federal judge ruled that Apple must stop taking commissions on purchases made outside of its app store and referred the company to the U.S. Department of Justice for possible criminal contempt over allegations it violated a prior court order.

Apple has stated it plans to appeal the ruling.

All eyes are now on July, when tariff policy shifts could reshape Apple’s strategy and the prices consumers pay — yet again.